Howard Saycell, CEO, Retra OPINION


September 2022 ertonline.co.uk


12


‘Anything that shores up consumer confidence should be good news for retailers’


Retra’s Howard Saycell reviews recent events, and outlines what the Chancellor’s ‘mini budget’ could mean for retailers in the months ahead.


I


have just finished watching our new Chancellor of The Exchequer deliver his first mini budget. My initial reaction is that it was anything other than “mini”. Clearly the policy agreed between our new Chancellor and Prime Minister is to go for growth in the economy. You will have seen by now the significant change in direction, particularly in terms of National Insurance and Income Tax. Add to that the energy support for both households and business and it feels very much like a budget designed to stimulate growth through demand. On the face of


consumer confidence should be good news


it, anything that shores up for


retailers. Already the money markets are jittery, and the pound has been hit hard. This of course can be bad news for retail, particularly if you are buying product in US Dollars.


There was good news for retail in the announcement about duty free shopping for tourists. Visitors will be able to shop VAT free and the Chancellor also promised a new digital system to replace the old paper-based one. It will mainly benefit those retailers in the major conurbations, but I know many of our London-based members will be very pleased by the announcement.


With a weak pound and the benefit of VAT free


purchases it should encourage tourists to spend a little more than perhaps they may have done. It was disappointing to not hear anything about Business Rates. Anyone that attended the Retra Conference earlier this year will know this is a source of much concern. The retail sector pays more than double the share of the tax it should based on the size of the market. Retail accounts for roughly 10 per cent of the UK’s GDP, but pays 25 per cent of the total levy on Business Rates. It is totally unfair and Retra will continue to raise this at the highest levels until something is done about it. Earlier this week I attended the Sirius Buying Group Trade Show and it was great to catch up with many old friends and see the support the brands are giving to the Group and its members. Asking many people “how is business?” the response was mixed. However, there was still a good deal of optimism around. As an industry we’ve been through difficult times before and in the main have come through stronger for it. It’s always good to see second and third generations of retailers at these events – which means they must be doing something right! Another topic that was raised at the Retra Conference was the thorny issue of B2C, or direct selling as many describe it. Once again it is something that Retra will not give up on. This issue


has been around for a while but it seems to be a route to market increasingly popular with manufacturers. We will continue to argue that the best consumer experience is to shop with people who give independent, experienced advice and will genuinely recommend the product that is right for their needs. Google recently outlined some trends that have continued since the pandemic; one of those is people searching for products “near me”. As we settle back into something more like normality [if that still exists] it is encouraging to see that trend continuing. The time has never been better for independent electrical retailers to engage with their communities. It really works. Sponsor the local school or library and support local charities – you will be amazed the response you might get in return. Big credit is due to our friends at Euronics for their recent advertising campaign featuring Nick Knowles; I think it did a great job in highlighting the power and value of shopping locally. I couldn’t end this piece without mention of Her Majesty Queen Elizabeth II. Most of our members closed for the whole day of her funeral, thus allowing all their staff to pay their appropriate respects. It was amazing to see such outpouring of emotions and grief from a whole nation, the vast majority of whom had never met her. May she rest in peace.


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